Moscow: Chechen gunmen on October 25 freed 15 people, including eight children, but fate of nearly 700 hostages hung in balance for the third day in the besieged Moscow theatre where situation is reported to have worsened after a hot water pipe burst in the basement flooding the building.

The terrorists, demanding an end to Russian military operations in Chechnya, handed over eight children, including a Swiss girl, to the International Red Cross representatives, the Interfax agency reported.

The children aged between six and 12 years and dressed in winter coats looked tired and frightened as they were led from the building by members of the International Committee of Red Cross, who held negotiations with rebels inside the building.

Earlier in the morning, the rebels had released 7 hostages, said to be Ukrainian citizens. However, they reneged on a promise to release all the 75 foreigners.

US Consul General James Warlick said the negotiations had broken down. The reasons for the failure were not specified.

Head of the Russian Red Cross Alexander Zharkov disclosed that copies of passport of some of the hostages were given to gunmen while the Russian NTV channel, which was allowed inside the theatre on October 25 morning, said the hostage-takers had put forward more demands for the release of the foreigners.

The atmosphere inside the theatre is said to be becoming increasingly threatening with reports that many of the hostages have been tied to their seats and some have had explosives strapped on to them, a BBC website report said.

PTI